Local view for "http://purl.org/linkedpolitics/eu/plenary/2010-11-11-Speech-4-086"
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"en.20101111.5.4-086"2
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"Madam President, Commissioner, the profitability of livestock production is directly linked to feed costs. In the growing context of volatile raw materials prices, decision making is becoming very complex for feed manufacturers and livestock breeders, as we saw at the start of the political year.
The meat sector that is having the most difficult time is currently the pork sector. Therefore, I will focus my speech on the serious problems it is facing: the increase in the cost of animal feed, which represents 60% of production costs, and is therefore crucially important in terms of profitability for producers.
In two months, cereal prices have risen by 50%, not due to an imbalance between supply and demand, as there is sufficient production, but due to speculation from outside the sector.
Action must therefore be taken against speculation, along with a policy encouraging the holding of sufficient strategic stock to avoid speculation.
We welcome the fact that grain intervention stocks are being put on the market. We just have to hope that their final destination will be the EU market, otherwise they will not help the livestock sector. A tax on exporting European cereal, as in the case of wheat in 1994, would be a possible solution.
Another problem is the pressure of mass distribution with falling prices, which means that increases in production costs cannot be regained from the sale price.
Producers’ organisations need to be promoted that are capable of positioning themselves in the market, concentrating supply. The Commission is very much aware of the problem, but there is a lack of specific measures, which we hope will materialise in the future common agricultural policy, through efficient and flexible market management mechanisms to combat and act against the problems. This means combating speculation and using specific measures to promote the competitiveness of the sector in the market and increase its weight in the value chain.
I would also like to take this opportunity to ask for the activation of the market measures applicable to pork, export refunds and private storage. The Commission does not think that the situation in the sector justifies this. However, in recent months, there has been a continuous decline in prices, and the prices received by breeders are below the average for the last five years.
I believe it is justifiable for the Commission to trigger the existing market management measures, as some Member States have requested in the Council."@en1
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